An overview of investment funds in Türkiye
The Turkish government has regulated the work of investment funds in the country by subjecting these funds to continuous supervision and regulating their work by the Turkish Securities and Exchange Commission, which is the authority authorized to grant licenses to investment fund management companies, monitor their activities and their compliance with regulations, in addition to its role in protecting investors participating in these funds.
Based on the relevant licenses mentioned, fund management companies are authorized to establish them according to the plans proposed, and the fund is supervised by an investment team headed by an expert and experienced manager in his field, who improves the management of the fund and directs it towards success and growth.
Investment funds work to attract capital to participate in them and purchase their units, guided by the profit and growth incentives and ambitious investment plans proposed by the fund. Profits are shared on a quarterly, annual, or other basis, while providing the opportunity to liquidate capital at the time of need, according to specific conditions.
What is the purpose of investment funds?
Today's investment funds constitute financial instruments with encouraging profit objectives. Perhaps among their most important objectives are:
- Providing various investment opportunities (in stocks, bonds, real estate, or commodities), and investing in them by benefiting from the expertise of experienced and sophisticated fund managers in managing these investment tools.
- Crossing borders for global investments, as investment funds have the opportunity to access global markets more smoothly with their businesses.
- Specialization in project and investment management: Investment funds are characterized by specialization in their work, and are managed following the licenses granted to them based on their work.
- Providing the opportunity to participate in investment for owners of small capital, by purchasing specific units in the selected fund, and dividend returns are according to the share of the fund.
- The tax deductions that investment funds enjoy for conducting their business make them more profitable in making a profit, compared to individual investments, which means achieving higher profitable returns.
How to establish investment funds in Türkiye?
It is known that establishing an investment fund management company can be a complex matter, requiring specific approvals and licenses, and compliance with relevant regulations.
However, portfolio and investment fund management companies (whose primary activity is establishing and managing investment funds) may establish new funds, where the founder of the company is responsible for managing, representing, and maintaining the fund, including distributing risks and protecting shareholders’ rights under the principles of fiduciary ownership, and the founding manager represents the fund. Before the Turkish Capital Markets Authority and other official bodies and unit holders on behalf of the fund.
Establishing an investment fund through one of the companies licensed in this regard (such as Oragon) is a relatively smooth matter, and is not fraught with these complications, especially with the experience these companies have in establishing and managing funds while helping you access experts in the field of investment or law.
The process of establishing investment funds in Turkey involves some conditions and procedures, and companies licensed to manage investment funds can play an active role in assisting in establishing funds and adhering to the relevant regulations.
It is noteworthy that collective investment companies (investment fund management companies) are established on an independent legal basis and have broad powers, while when investment funds are established by another legal entity, they are within the framework of a specific contract. Although they are similar in terms of purpose and economic function, investment funds and investment companies differ from each other based on the way they operate and the services they provide to investors.
Can foreigners establish investment funds in Türkiye?
Foreign investors can participate in available investment funds seamlessly, in addition to the possibility of establishing their investment funds for those with large capital and specific investment objectives.
Investment fund management companies in Turkey, including Oragon, provide the service of opening new investment funds by taking advantage of the licenses granted to them, in addition to providing multiple fund management services.
We must mention that investment funds allow foreign investors to apply for and acquire Turkish citizenship, according to specific financial conditions, the most important of which are: that the value of the amount invested in one of the funds reach $500,000 and more and that the investor maintains his investment in the fund for a minimum of 3 years.
Oragon Company services in establishing and managing investment funds
Oragon Company launched its business with an ambitious vision towards growth, and with investment expertise known for its ability and huge achievements. It is one of the well-known “Imtilak Group” investment companies with a strong presence in the Turkish markets in some investment fields and with a history extending for more than a decade of achievements and successes. Until “Imtilak” went global through its other auxiliary companies.
As for Oragon, it has excelled in providing a wide range of advanced services in the field of participatory investment funds, the most important of which are:
- Investment fund management: Oragon provides comprehensive management services for investment funds, with its experience in selecting appropriate assets for investment, especially in the field of real estate investment, according to integrated work mechanisms, and under the supervision of an elite group of specialists and professionals.
- Establishing investment funds: By assisting Oragon clients in establishing new investment funds and obtaining their licenses, while facilitating the preparation of legal documents and following up on official approvals.
- Free consultations: At Oragon, we also provide those interested in participatory investment with all necessary financial and investment consultations and advice.
Edited by Oragon Company ©
